This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
Requested R-3492-2002 - Phase 2
ELECTRICITY PURCHASES AND TRANSMISSION
SERVICE
Original: 2003-08-14
HQD-5, Document 2
Page 1 of 5
This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
Original: 2003-08-14
Requested R-3492-2002 - Phase 2
HQD-5, Document 2
Page 2 of 5
This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
Requested R-3492-2002 - Phase 2
1. SYNOPSIS OF ELECTRICITY AND TRANSMISSION PURCHASES
Electricity and Transmission Services Purchases
(in millions of dollars)
Financial Period Ending December 31
Historical Years
2001
Electricity Purchases
Base Year
2002
Forecast
Year
2004
2003
4 099.3
4 224.6
4 487.9
4 627.4
4 046.9
4 173.2
4 420.6
4 488.6
52.4
51.4
67.3
138.8
Transmission Service
2 313.0
2 313.0
2 313.0
2 313.0
Local Load
2 313.0
2 313.0
2 313.0
2 313.0
6 412.3
6 537.6
6 800.9
6 940.4
Heritage
Non Heritage
Electricity and Transmission
Purchases
1
2. ELECTRICITY PURCHASES
2
To serve Quebec customers, the Distributor has a volume of 165 TWh of
3
heritage electricity at an average cost of 2.79¢/kWh. The Distributor does not
4
foresee going beyond this volume before 2005.
5
6
The Law governing the Régie foresees distributing the cost of supply of 2.79
7
¢/kWh between the consumer categories according to their consumption
8
characteristics. For special contracts, whose consumption volume exceeds 20
9
TWh and is part of heritage consumption, the cost of supply corresponds to the
10
rate envisioned in the contract, with deductions made from applicable
11
transmission
12
characteristics. This formula protects other consumer categories from electricity
13
price fluctuations that are inherent in the special contracts.
and
distribution
costs
according
to
their
consumption
14
Original: 2003-08-14
HQD-5, Document 2
Page 3 of 5
This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
Requested R-3492-2002 - Phase 2
1
Additionally, the heritage consumption volume excludes those volumes from real
2
time or back up energy tariff, much like the volumes of energy supplied from the
3
blocks determined through government regulation. For this reason, Hydro
4
Quebec Generation benefits from real time rates BT, LC, LR and MR, the back
5
up rates GD, H, LD and LP, as well as the interruptible power programs I and ll.
6
The cost of supply that corresponds to real time tariffs and back up energy is
7
established according to market price.
8
9
The costs and volumes of electricity provided for the years 2001 to 2004 are
10
detailed in the table that follows. Forecasts for 2003 and 2004 reflect Hydro-
11
Quebec Generation’s decision to continue, starting from December 1st 2003,
12
supplying tariff BT only insofar as the paid price reflects the market rates, which
13
is estimated at 7.5¢/kWh. They assume the maintenance of tariff BT until
14
December 31, 2004 without regard for the regulatory treatment required by the
15
Distributor for the losses related to this tariff as per HQD-3, Document 2, and for
16
which no rate increase is currently required. Lastly, these forecasts do not
17
include any provisions for climatic risks.
Original: 2003-08-14
HQD-5, Document 2
Page 4 of 5
This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
Requested R-3492-2002 - Phase 2
1
2
Electricity Purchases
(in millions of dollars)
Financial Period Ending December 31
Historical Years
2001
2002
Base Year
2003
Forecast Year
2004
Heritage Electricity
Volume (in GWh)
150 377
156 437
162 553
164 120
4 191.9
4 359.5
4 535.2
4 574.5
4 046.9
4 173.2
4 420.6
4 488.6
1 572
1 540
1 707
1 853
1 560
1 527
1 700
1 846
12
13
7
7
52.4
51.4
67.3
138.8
51.8
50.7
67.0
138.5
0.6
0.7
0.3
0.3
Volume (in GWh)
151 949
157 977
164 260
165 973
Supply Cost
4 099.3
4 224.6
4 487.9
4 627.4
Supply cost
Before special
contracts adjustment
After special contracts
adjustment
Non Heritage Electricity
Volume (in GWh)
Tariff BT
Others
Supply cost
Tariff BT
Others
Electricity Purchases
3
3. TRANSMISSION SERVICE
4
The costs related to transmission service for local load correspond to the current
5
tariff as of January 1st 2001, as set by the Régie in its D-2002-95 decision.
Original: 2003-08-14
HQD-5, Document 2
Page 5 of 5